What is the first step?
Community Action Partnership of
Call CAPSH and ask to speak with a reverse Suburban Hennepin (CAPSH)
33 Tenth Avenue South, Suite 150
Contact Numbers Hopkins, MN 55343
952-697-1302 (metro) Phone: 952-933-9639
1-877-645-0621 ext. 135 (greater MN) Fax: 952-933-8016
How does the process work?
Serving the residents of these
• Reverse mortgage counselors gather
information from the homeowner on their
suburban Hennepin communities:
financial situation and help them evaluate Brooklyn Park Osseo
their circumstance. Brooklyn Center Independence Plymouth
Champlin Long Lake Richfield
• Counselors provide homeowners with Chanhassen Lorretto Robbinsdale
information on programs they can use Maple Grove
Crystal Maple Plain Rogers
instead of, or in addition to, a reverse Dayton St. Anthony
mortgage. Deephaven Medina St. Bonifacius
Eden Prairie Minnetonka St. Louis Park
• Counselors explain reverse mortgage Edina Mtka Beach Shorewood
Excelsior Spring Park
options with examples tailored to individual Golden Valley
circumstances. Greenwood New Hope Wayzata
• Sessions are individual, confidential, and
available to any Minnesota senior. This program is generously funded by:
Why do I need to see a housing
counselor before applying?
Minnesota Senior Federation Money from
Minnesota Dept. of Human Services
• The State of Minnesota requires counsel- Minnesota Housing Finance Agency
ing by a HUD-approved housing counseling U.S. Dept. of Housing and Urban Development
agency before you apply for any reverse The cities of suburban Hennepin County (and
mortgage. local HRA’s)
Individuals like you
• Family members are strongly encouraged Minnesota Senior Federation For assistance, call
to attend the counseling session. There is
no cost or obligation for these services. 1885 University Avenue West, Suite 190
This information is available in alternate formats upon request
St. Paul, MN 55104
CAPSH is a HUD-approved Housing Counseling Agency.
Basic Reverse Mortgage Facts: Does the lender get the house? Are there closing fees?
• A reverse mortgage is a special type of • No, you keep the title to the property. • Yes, the homeowner will need to pay
mortgage that may enable older You are still responsible for property approximately $300 at the time of
homeowners to remain in their homes taxes, insurance and repairs. application. The charges can be
for as long as they choose. financed and include closing costs,
• You may sell the home at any time. If mortgage insurance premiums and
• It is a loan against home equity that you decide to sell, the mortgage will be lender servicing fees.
provides homeowners with cash paid off and you will keep the remaining
advances according to the plan they equity. Are there restrictions on how I spend
select. my equity?
How much can I get?
How is a reverse mortgage different • No. A reverse mortgage can be used to
from a home equity loan? • The age of the youngest borrower (your meet a variety of needs, including
age or your spouse’s age, if younger), increasing your monthly income, or
• With a home equity loan, you must your home’s equity, and the interest paying for property taxes, home
make regular payments to repay the rate, will determine how much you can improvements or other expenses.
Will this loan affect my retirement
• HUD reverse mortgages require no • For a more expensive home, not all of
the home’s equity will be used to benefits?
repayment until the home is sold or the
last surviving borrower dies or determine the maximum mortgage you
• No, there is no effect on Medicare,
permanently moves. can obtain.
Social Security or pensions.
Who is eligible for a HUD reverse How can I withdraw my equity? • It is possible to receive assistance from
mortgage? public programs like Medical
• Receive cash at closing. Assistance, food stamps or home
• Borrowers must be at least 62 years of health care and still utilize a reverse
age and have the title to the property. • Receive monthly cash advances until
you sell your home.
• Homeowners do not need good credit to Where can I receive reverse
qualify. • Receive monthly cash allowances for a
specified amount of time. mortgage counseling?
What types of properties are eligible? • Establish a line of credit for withdrawing • Counselors provide sessions at the
as you need it. CAPSH office in Hopkins. Counseling
• Single-family homes, condos, sessions are also offered in St. Paul at
townhomes, duplexes, triplexes or • Have a combination of a line of credit the Minnesota Senior Federation (Metro
fourplexes qualify. and monthly cash advances. Region) office.
• Homeowners must either own their *You are permitted to change plans at any
home or have a mortgage balance that time over the life of the loan.*
can be paid off with the reverse